The back-to-front way of buying big things (on finance)

By | 23rd January 2017

The-backwards-way-to-buy-cars-and-houses

The first (wrong) question that usually comes up when considering some of the biggest purchases is:

What are you looking to spend?

However, the first question should be:

What are your requirements?

Many people can make the mistake of setting a budget first, before then seeing what they can spend that whole budget on.

In the case of finance, the maximum budget could be a multiple of the annual earnings – but you don’t have to use it all!

In many cases there are things well below your maximum that meet all your requirements, enabling you to save money towards other goals (perhaps FI) rather than spend it all on things that cost more but don’t provide much more in the way of useful additional benefits.

After building up 17 years experience in industry and practice, James started his own business from scratch in 2006. He now helps others to do the same, while minimising both the risks and costs. James is dual qualified in tax and accounts, and has won multiple awards for small business. In 2014 he was invited to Downing Street, as one of the Small Business Saturday 100 winners.

Leave a Reply

Your email address will not be published. Required fields are marked *